NEW BIS LICENSE TYPES C73 – License Exceptions Artificial Intelligence Authorization (AIA) and C74 Advanced Compute Manufacturing (ACM)
January 28, 2025
On Monday, January 13, 2025, the Department of Commerce, Bureau of Industry and Security (BIS) put on public inspection at the Office of the Federal Register an interim final rule with an effective date of Monday, January 13, 2025 and a compliance date of May 15 for most provisions. The IFR was published in the Federal Register on Thursday, January 16 2024 (https://www.federalregister.gov/documents/2025/01/15/2025-00636/framework-for-artificial-intelligence-diffusion). Among other actions, this interim final rule established new controls on advanced AI chips exceeding the technical thresholds in ECCN 3A090.a and also creates License Exceptions Artificial Intelligence Authorization (AIA) and Advanced Compute Manufacturing (ACM).
New License Code C73 (AIA)
An update has been made to AES to create new License Code C73 Artificial Intelligence Authorization (AIA) which authorizes the export, reexport, or transfer (in-country) of eligible advanced computing chips and associated software and technology to entities located in a destination listed in paragraph (a) of supplement no. 5 to part 740 as long as they certify compliance with specific requirements provided in EAR 740.27.
The full terms of License Exception AIA are described in § 740.27.
AES filers must adhere to the following new reporting when using C73 (AIA) to prevent the return of fatal errors from AES:
- Report License Code: C73 Artificial Intelligence Authorization (AIA)
- Allowable ECCNs: 3A001.z, 3A090.a, 3A090.z, 3D001, 4A003.z, 4A004.z, 4A005.z, 4A090.a, 4A090.z, 4D001, 4D090, 4E001, 4E091, 5A002.z, 5A004.z, 5A992.z, 5D002.z, 5D992.z, 5E002, and 5E992
- Allowable countries: All Countries listed in Supplement 5 to part 740 (Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, Taiwan, the United Kingdom, and the United States)
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
New License Code C74 (ACM)
An update has been made to AES to create new License Code C74 Advanced Compute Manufacturing (ACM) which authorizes the export, reexport, and transfer (in-country) of eligible items to a ‘private sector end user’ that is located in a destination not listed in Country Group D:5 or Macau, for the purposes of development, production, and storage of these chips, except for or in arms embargoed countries (D:5 and Macau).
The full terms of License Exception ACM are described in § 740.28.
AES filers must adhere to the following new reporting when using C74 (ACM) to prevent the return of fatal errors from AES:
- Report License Code: C74 Advanced Compute Manufacturing (ACM)
- Allowable ECCNs: 3A001.z, 3A090, 3D001, 3E001, 4A003.z, 4A004.z, 4A005.z, 4A090, 4D001, 4D090, 4E001, 5A002.z, 5A004.z, 5A992.z, 5D002.z, 5D992.z, 5E002, and 5E992
- Allowable countries: All Countries except Macau and destinations listed in Country Group D:5
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
A complete list of all of the AES License Codes and reporting instructions for these types can be found at https://www.cbp.gov/document/guidance/aestir-appendix-f-license-and-license-exemption-type-codes
For questions regarding these upcoming AES changes, please contact the Bureau of Industry and Security at one of the phone numbers below.
Outreach and Educational Services Division (located in Washington, DC) (202) 482-4811
Western Regional Office (located in Irvine, CA) (949) 660–0144
Northern California branch (located in San Jose, CA) (408) 998-8806
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